1. Operating section 2. Nonoperating section 3. Income tax 4. Discontinued operations 5. Extraordinary items 6. Noncontrolling interest 7. Earnings per share Intermediate Components Intermediate Components LO 3 Prepare an income statement.
4-10 CABRERA COMPANY Income Statement For The Year Ended December 31, 2014 1. Operating Section 2. Nonoperating Section 3. Income tax Multiple-Step Multiple-Step Illustration 4-2
4-11 Condensed Income Statements Condensed Income Statements Illustration 4-3 LO 3 Prepare an income statement.
4-12 Revenues Expenses Net Income Single- Step Single- Step No implication that one type of revenue or expense item has priority over another. Single-Step Income Statements Format of the Income Statement Format of the Income Statement Illustration 4-5 LO 3 Prepare an income statement.
4-13 The single-step income statement emphasizes a. the gross profit figure. b. total revenues and total expenses. c. extraordinary items more than it is emphasized in the multiple-step income statement. d. the various components of income from continuing operations. Question LO 3 Prepare an income statement. Format of the Income Statement Format of the Income Statement
4-14 Illustration (E4-5): Prepare a income statement from the data below using the multiple-step form. Format of the Income Statement Format of the Income Statement Advance slide in presentation mode to reveal answers. LO 3 Prepare an income statement.
4-15 A separation of operating and non operating activities of a company exists in a. both a multiple-step and single-step income statement. b. a multiple-step but not a single-step income statement. c. a single-step but not a multiple-step income statement. d. neither a single-step nor a multiple-step income statement. Format of the Income Statement Format of the Income Statement Question LO 3 Prepare an income statement.
4-16 Companies are required to report unusual and irregular items as part of net income so users can better determine the long- run earning power of the company. These income items fall into four general categories : 1.Unusual gains and losses. 2.Discontinued operations. 3.Extraordinary items. 4.Noncontrolling interest.LO 4 Explain how to report various income items.
1.Losses on the write-down or write-off of assets. 2.Gains or losses from exchange or translation of foreign currencies. 3.Restructuring charges. 4.Other gains or losses from sale or abandonment of property, plant, or equipment used in the business.
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